Boosting The Supply Of MINYAKITA, The Minister Of Trade Issues Regulation Number 18 Of 2024

Dok/Kemendag

Boosting The Supply Of MINYAKITA, The Minister Of Trade Issues Regulation Number 18 Of 2024

Monday, 19 Aug 2024

Trade Minister Zulkifli Hasan has issued Regulation Number 18 of 2024 regarding Packaged Palm Oil and the Management of People's Cooking Oil. This new regulation changes the domestic market obligation (DMO) for People's Cooking Oil from bulk or packaged forms to exclusively MINYAKITA. The regulation takes effect on August 14, 2024.

The aim of this regulation is to boost the supply of MINYAKITA as a strategy to stabilize cooking oil prices and control inflation. MINYAKITA has become a popular choice among consumers, alongside premium branded oils.

"With the release of Regulation 18 of 2024, the DMO for People's Cooking Oil has shifted from bulk or packaged forms to solely MINYAKITA. This is expected to enhance the availability of MINYAKITA in the market," said Minister Zulkifli Hasan on Friday, August 16, in Jakarta.

He clarified that MINYAKITA is not a government-subsidized oil but rather a contribution from palm oil exporters to the domestic market through the DMO scheme. According to the Ministry of Trade's analysis, the distribution of DMO needs to be improved as it positively impacts the stability of cooking oil prices.

Zulkifli Hasan noted that Regulation Number 18 of 2024 refines the previous cooking oil regulation, which was Regulation Number 49 of 2022. "In addition to changing the DMO format to only MINYAKITA, the packaging sizes will now include 500 ml, 1 liter, 2 liters, and 5 liters," he explained.

He also encouraged the public to opt for packaged cooking oil, stating, "Packaged cooking oil maintains better quality, cleanliness, safety, and halal standards compared to bulk oil," he added.

Minister Zulkifli Hasan explained that the selling price of MINYAKITA is still set below the price of premium packaged cooking oil to keep it affordable for the public. However, there has been a slight adjustment in the Highest Retail Price (HET), which has increased from Rp14,000 per liter to Rp15,700 per liter. "The HET was determined by considering the changes in raw material prices and public acceptance. We’ve done our research, balancing the producers' capabilities with what consumers are willing to pay," said Minister Zulkifli Hasan.

He also mentioned that any exporter dealing with palm oil derivatives who needs Export Rights must distribute MGR in the form of MINYAKITA. These Export Rights are necessary for issuing Export Approval. MGR can be recognized as Export Rights if it has been received by the First Distributor (D1) of the State-Owned Enterprise (BUMN) Food, or by the Second Distributor (D2) or retailers if it doesn’t go through the BUMN distributor, which must be reported in the digital system of the Curah Cooking Oil Information System (SIMIRAH). "We aim to distribute 250,000 tons of MINYAKITA to the public each month," he explained.

To give businesses time to adjust to the new regulations, Permendag 18 of 2024 includes transition provisions. "Businesses can still distribute DMO in the form of crude palm oil (CPO) and bulk cooking oil, and continue to sell MINYAKITA with the old HET label for up to 90 days. Additionally, those still distributing MINYAKITA outside the DMO rules can do so for another 30 days to clear their existing stock," concluded Minister Zulkifli Hasan.

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